Technicals: Palm oil may test support 4,900 ringgit
TECHNICALS-Palm oil may test support 4,900 ringgit SINGAPORE, Sept 18 (Reuters) - Palm oil FCPOc3 may test a support at 4,900 ringgit per metric ton, a break below which could open the way toward the 4,841-4,865 ringgit range.
The contract failed to escape from a consolidation range. It also covered a common gap. Its behaviour suggests and extension of the consolidation. A retracement analysis on the rise from 4,808 ringgit reveals a break below the 50% level of 4,929 ringgit.
The break is likely to be followed by a drop into the 4,865-4,900 range. A break above 4,957 ringgit could lead to a gain into the 4,993-5,014 ringgit range.
On the daily chart, the current consolidation may take the shape of either a flat pattern or a triple-top. A flat could only be confirmed when the contract breaks 5,032 ringgit, while a double-top would become valid when the market breaks 4,814 ringgit.
The wave pattern suggests an upside bias, as a wave C from 4,370 ringgit looks too short to complete in terms of length, compared to the preceding wave A from 3,893 ringgit.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. His analyses are published exclusively on the Workspace platform, a London Stock Exchange product.
** No information in this analysis should be considered business, financial, or legal advice. Each reader should consult their own professional or other advisers for business, financial, or legal advice regarding the products mentioned in the analyses.
(Reporting by Wang Tao; Editing by Sonia Cheema)
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